CHEZA PROPERTIES LIMITED

Executive Summary

CHEZA PROPERTIES LIMITED is a micro-entity with a weak financial position characterized by negative net assets and significant liabilities exceeding current assets. Liquidity is constrained, and the company lacks sufficient working capital to meet short-term obligations. Given these factors, credit risk is high, and approval for credit facilities is not recommended without substantial financial improvement or guarantees.

CHEZA PROPERTIES LIMITED - Analysis Report

Company Number: 13942722

Analysis Date: 2025-07-20 17:00 UTC

1. Credit Opinion: DECLINE. CHEZA PROPERTIES LIMITED exhibits a negative net asset position, indicating an equity deficit, which raises concerns about financial stability and the ability to service debt. The company has sizeable long-term liabilities (£111,568) compared to very limited current assets, and the negative working capital position worsens liquidity risk. With only one employee and limited operational scale as a micro-entity, the business appears to have limited financial resilience and capacity to generate cash flow to meet obligations.

2. Financial Strength: The balance sheet shows fixed assets of approximately £166k but current assets are minimal (£4k), while current liabilities are substantial (£61k), resulting in negative net current assets of about £57k. Total liabilities exceed total assets by nearly £3k, reflecting a net liabilities position. The persistent negative shareholders’ funds over the last two years suggest accumulated losses or insufficient capital injection. The company’s reliance on long-term creditors (£111k) without adequate equity buffer is a significant concern.

3. Cash Flow Assessment: Current assets mainly consist of negligible cash or receivables, insufficient to cover short-term liabilities. Negative working capital signals potential difficulties in meeting immediate obligations. There is no indication of internal cash generation or profitability, and with only one employee, operational scale is minimal. The absence of audit or detailed cash flow statements limits visibility but the financial snapshot implies weak liquidity and constrained operating cash flow.

4. Monitoring Points:

• Improvement in net assets and shareholders’ funds through capital injection or profitability.
• Reduction of current liabilities or restructuring of debt to improve liquidity.
• Evidence of operational cash flow generation and ability to service debt timely.
• Changes in asset base or business model that enhance financial resilience.
• Director or shareholder commitment to recapitalize or support the business financially.